Collecting Receivables in Turkey Arising from Foreign-Law Governed Contracts

yazarı lawyerfbc

açık Ocak 15, 2026

1. Introduction: Why Foreign-Law Receivables Often End Up Being Collected in Turkey

In international commerce, it is common for contracts to be governed by a foreign law (English law, Swiss law, German law, etc.) while the debtor’s assets—bank accounts, receivables, inventory, real estate, shares, or ongoing projects—are located in Turkey. When payment fails, the creditor’s primary objective becomes practical: reach the assets where they are.

Turkey offers a creditor-friendly enforcement infrastructure (the Execution Offices / İcra Daireleri) and robust interim remedies (most notably interim attachment / ihtiyati haciz). However, foreign-law governance introduces cross-border complications:

the contract’s substantive rules (interpretation, breach, limitation, interest) may follow foreign law,
but procedure and enforcement are governed by Turkish law (lex fori),
and dispute resolution clauses (foreign court jurisdiction or arbitration) can determine whether you must first obtain a foreign judgment or arbitral award before seizing assets.

This article provides a detailed, step-by-step roadmap to pursue receivables arising from foreign-law governed contracts in Turkey, with a focus on practical enforcement strategy and the Turkish legal framework:

Turkish International Private and Procedural Law Act (MÖHUK)
Execution and Bankruptcy Law (İİK)
Code of Civil Procedure (HMK)
Turkish Code of Obligations (TBK) and commercial interest rules (including Law No. 3095)

Disclaimer: This article is for general information and does not replace case-specific legal advice. Cross-border enforcement outcomes depend heavily on contract wording, evidence quality, debtor asset profile, and timing.

2. Key Principle: Foreign Law Governs the Debt, Turkey Governs the Enforcement

A frequent misconception is: “If the contract is governed by foreign law, Turkey cannot enforce it.” The opposite is generally true.

2.1. Substantive Law vs. Procedural Law

Substantive issues (whether a debt exists, breach, contract interpretation, limitation periods, interest entitlements) may be governed by the chosen foreign law under MÖHUK.
Procedural issues (how to sue, how to prove, how to attach assets, how to run execution proceedings, timelines, objection mechanisms, auctions) are governed by Turkish procedural and enforcement rules.

This division matters because the creditor must build a strategy that respects both:

What you must prove (often shaped by foreign law), and
How you can collect (always shaped by Turkish enforcement law).

3. First Strategic Question: Do You Need a Judgment/Award Before Starting Enforcement in Turkey?

Your path in Turkey usually falls into one of three routes:

Route A — Direct Execution Proceedings in Turkey (Most Fast-Paced, But Debtor Can Object)

You may start non-judicial execution (ilamsız icra) before an Execution Office in Turkey for a money claim. This is administratively quick.
Risk: If the debtor objects in time, the proceeding stops, and you must shift into court litigation (or arbitration) to eliminate the objection.

Route B — Recognition and Enforcement of a Foreign Court Judgment (Tanıma/Tenfiz)

If you already have a foreign court judgment (or need one due to an exclusive jurisdiction clause), you will usually apply for:

Recognition (tanıma): mainly to accept the judgment’s legal effect,
Enforcement (tenfiz): to actually execute the judgment in Turkey (seizure, sale, collection).

Route C — Enforcement of a Foreign Arbitral Award (New York Convention + MÖHUK)

If your contract has arbitration, your strongest asset is typically a final arbitral award. Turkey is a party to the New York Convention, so foreign arbitral awards are often enforceable subject to limited refusal grounds.

Golden rule:
If your contract has a clear arbitration clause, Turkish courts generally should not decide the merits; you should usually secure an award and then enforce it.
If your contract has an exclusive foreign court jurisdiction clause, you may need a foreign judgment first (or at least anticipate significant procedural resistance in Turkey).

4. Understanding Turkish Execution Options for Foreign-Law Contract Claims

4.1. Ilamsız İcra (Non-Judicial Execution) for Contract Debts

This is the most commonly used tool for straightforward money claims.

How it works (simplified):

Creditor files an execution request at the Execution Office.
Office issues a payment order to the debtor.
Debtor has a short period to pay or object.
If no objection → enforcement continues → attachment and collection.
If objection → proceeding stops → creditor must pursue litigation/arbitration steps to lift the objection.

Why this matters for foreign-law contracts:
You can start quickly, but if the debtor objects, you must prove the claim in a forum competent despite any jurisdiction/arbitration clause.

4.2. “Objection Risk” and the Contract’s Dispute Resolution Clause

If the debtor objects, the creditor commonly needs to pursue:

an annulment of objection lawsuit (itirazın iptali) or
an action for removal of objection (itirazın kaldırılması)—only available when you have specific types of documents recognized by Turkish enforcement law.

Foreign-law contracts often lack the “Turkish-execution-friendly” documentary forms, which means:

itirazın kaldırılması may not be available, pushing you toward full litigation or arbitration.

4.3. The Practical Takeaway

Ilamsız icra is often useful when:

speed matters,
assets might disappear,
you need immediate pressure,
and you can combine it with interim attachment or swift litigation/arbitration planning.

But it should be initiated with a clear plan for the “debtor objects” scenario.

5. Choice of Law Clauses (MÖHUK): What You Must Prove in Turkish Proceedings

5.1. Validity and Scope of Choice of Law

Under MÖHUK, parties may generally choose the law applicable to their contractual relationship. In practice, Turkish courts will respect a valid choice-of-law clause unless it conflicts with:

mandatory rules, or
Turkish public order (kamu düzeni).

5.2. Proving Foreign Law in Turkey

In disputes governed by foreign law, the foreign law’s content may need to be established before Turkish courts. Practically, this is often done through:

legal opinions (expert reports) on foreign law,
official texts/translations,
and supporting jurisprudence/secondary sources.

If foreign law cannot be determined with sufficient clarity, Turkish courts may, depending on the circumstances and the case posture, move toward applying Turkish law to avoid a “legal vacuum.”
Practical point: do not leave foreign law to chance—submit it proactively with a structured legal opinion.

5.3. Choice of Law Does Not Automatically Choose the Forum

A choice-of-law clause answers: Which substantive rules govern the contract?
It does not by itself answer: Which court (or arbitral tribunal) has jurisdiction?

That is why choice of law, jurisdiction clause, and arbitration clause must be read together before deciding your Turkey enforcement strategy.

6. Jurisdiction Clauses and Their Impact on Turkey Enforcement

6.1. Exclusive Foreign Court Jurisdiction Clauses

If the contract contains an exclusive jurisdiction clause in favor of a foreign court, a Turkish court may decline jurisdiction if the clause is valid and applicable to the dispute. This can affect:

your ability to litigate in Turkey to overcome an objection in execution,
the debtor’s procedural defenses,
and overall strategy.

Best practice: If exclusivity is clear, plan to obtain a foreign judgment first and then seek tenfiz in Turkey.

6.2. Non-Exclusive Jurisdiction Clauses

Non-exclusive clauses may allow parallel options. But parallel litigation across jurisdictions increases cost and risk. In Turkey, courts may still consider:

contractual allocation of forum,
procedural economy,
and the risk of contradictory judgments.

6.3. Service, Notification, and Contractual Notice Mechanics

Many foreign-law contracts require notices (default notices, cure periods, acceleration notices) as preconditions to claim maturity. Turkish enforcement becomes easier when you can show:

notice sent to the correct contractual address,
method consistent with the contract,
and proof of delivery.

Operational tip: Prepare a “notice evidence file” early (courier receipts, emails with headers, KEP where available, delivery confirmations, translations).

7. Arbitration Clauses: Often the Fastest Path to an Enforceable Title in Turkey

7.1. Why Arbitration Can Be a Strategic Advantage

If the debtor has assets in Turkey but does business internationally, arbitration can produce a strong enforceable instrument:

a final award,
often with fewer appeal layers than court judgments,
and with enforcement under the New York Convention.

7.2. Enforcing Foreign Arbitral Awards in Turkey

Turkey generally enforces foreign arbitral awards unless refusal grounds apply (typical New York Convention grounds), such as:

invalid arbitration agreement,
lack of due process,
award exceeds scope of submission,
tribunal composition/procedure not as agreed,
award not yet binding or set aside at seat,
non-arbitrability,
public policy.

Practical drafting insight: Arbitration clauses that are vague or inconsistent (e.g., wrong institution name, conflicting seat references) create enforcement risk. If you are enforcing an award, include a clean chain of evidence: contract → arbitration clause → appointment → due process → final award → seat status.

8. Recognition and Enforcement of Foreign Court Judgments (Tanıma/Tenfiz)

8.1. When You Need Tenfiz

If your “enforcement title” is a foreign court judgment and you want to:

seize bank accounts,
attach receivables,
record liens,
sell assets via Turkish execution auctions,
you typically need tenfiz.

8.2. Core Requirements (High-Level)

While details vary by case type, typical issues evaluated include:

the judgment’s finality,
proper service and defense rights,
public policy compatibility,
and (where relevant) reciprocity considerations within the statutory framework.

Practical point: Tenfiz cases are document-driven. Small procedural defects (service irregularities abroad, missing finality stamps, missing apostille, incomplete translations) can delay enforcement dramatically.

8.3. Tenfiz Timeline Reality

Even when everything is correct, tenfiz is not “instant.” Creditors should mitigate delay by:

simultaneously planning interim measures in Turkey (where available),
starting asset investigation early,
and ensuring the foreign judgment package is “Turkey-ready” from day one.

9. Interim Attachment (İhtiyati Haciz): The Most Powerful Tool Against Asset Flight

9.1. Why Interim Attachment Matters

In cross-border debt disputes, the biggest risk is not legal merit—it is collectability. Debtors can move funds, empty accounts, transfer shares, or shuffle inventory quickly.
Interim attachment under İİK is designed for precisely this problem.

9.2. Typical Conditions (Conceptual)

Interim attachment is generally available for money claims where:

the claim is due (or becomes due under acceleration),
the creditor presents strong prima facie evidence,
and the court may require security (teminat) depending on circumstances.

9.3. Practical Use in Foreign-Law Contracts

Foreign-law governance does not block interim attachment. However, you must present evidence in a format that Turkish courts can assess quickly:

contract and amendments,
invoices/acceptance/delivery,
payment schedules,
default notices,
debtor acknowledgments (emails, payment promises, reconciliations),
account statements,
and a coherent chronology.

Strategic sequence:
In many files, the best approach is:

apply for interim attachment,
once granted, execute it immediately via Execution Office,
then litigate/arbitrate to finalize the debt title.

This sequence shifts leverage dramatically.

10. Evidence & Document Formalities: Making Your File “Execution-Ready” in Turkey

Foreign creditors frequently lose time in Turkey not because the claim is weak, but because the file is not formally usable.

10.1. Translation Requirements

Court and execution submissions generally require Turkish documents or certified Turkish translations. Plan for:

sworn translator work,
notary certification where necessary,
consistent terminology across exhibits (party names, contract title, currency, dates).

10.2. Apostille / Legalization

Foreign documents often require apostille under the Hague Apostille Convention (or consular legalization if not applicable). Common documents needing apostille:

foreign court judgments,
certificates of finality,
corporate registry extracts,
powers of attorney executed abroad.

10.3. Authority & Corporate Identity

Execution can fail or stall if the debtor’s identity is mismatched:

wrong trade name,
outdated registry data,
post-merger entity confusion,
incorrect tax number.

Best practice: Obtain current Turkish trade registry information (where applicable) and verify:

legal entity name,
MERSİS number,
address,
representation authority.

10.4. “Chronology File” (A Creditor’s Best Friend)

Prepare a single timeline memo (in Turkish or bilingual) that maps:

contract signature,
performance milestones,
invoices,
acceptance/delivery events,
due dates,
notice events,
partial payments,
debtor admissions,
current outstanding balance (with calculation table),
interest basis and rate,
currency conversion approach (if needed).

Judges and execution officers respond better to organized files—especially under time pressure for interim remedies.

11. Interest, Currency, and Calculation: The Hidden Battle in Turkey Enforcement

11.1. Foreign Currency Claims

Turkey permits claims in foreign currency in many commercial contexts. But execution practice involves:

how the debt will be recorded,
how interest accrues,
and how conversion is handled at the enforcement stage.

11.2. Contractual Interest vs. Turkish Mandatory Rules

Creditors often ask: “If the contract says 12% annual interest under foreign law, will Turkey enforce it?”
Often yes, but watch for:

characterization as penalty vs. interest,
public policy/mandatory limitations,
clarity of the clause,
and whether it is commercially reasonable and properly documented.

Where a contractual interest clause is weak, creditors should consider pleading alternatives:

contractual interest (primary),
statutory default interest (subsidiary),
and, where appropriate, damages for late payment under applicable substantive rules.

11.3. Liquidated Damages and Penalty Clauses

Penalty clauses can be enforceable, but the enforcement risk increases if:

the clause is excessive,
unclear,
or conflicts with mandatory constraints.

Practical drafting tip: Clearly separate “interest,” “late payment compensation,” and “penalty” and tie them to measurable triggers.

12. Limitation Periods: Which Law Applies and Why It Changes the Outcome

Limitation (time-bar) disputes are extremely common in cross-border collections.

If foreign law governs the contract, limitation may be treated as substantive and therefore follow the chosen law under the conflict rules.
However, the procedural handling (how the defense is raised, burden of proof, timing) will follow Turkish procedure.

Practical advice:
Do not assume Turkish limitation periods automatically apply. Build a limitation analysis under:

chosen foreign law, and
any potentially overriding Turkish mandatory rules,
and document it with an expert opinion when the amounts justify it.

13. Litigation in Turkey After Debtor Objection: What the Creditor Must Prove

If you started ilamsız icra and the debtor objected, you will likely need to proceed via:

court litigation in Turkey (if jurisdiction permits), or
arbitration (if clause exists), or
foreign court litigation (if exclusivity clause points abroad).

13.1. Burden of Proof and “Commercial Reality”

Turkish courts generally require:

proof of contract formation and authority,
performance by creditor,
maturity of debt,
and debtor default.

For cross-border supply/service contracts, the most persuasive evidence typically includes:

signed acceptance certificates,
delivery notes (CMR, bills of lading, warehouse receipts),
inspection/commissioning protocols,
email chains confirming acceptance,
invoice receipt confirmations,
reconciliation statements (mutabakat),
and partial payment history.

13.2. Foreign Law in the Merits Stage

If foreign law governs, the court may require clarity on:

how breach is assessed,
whether notices are conditions precedent,
whether set-off rights exist,
and how damages/interest are computed.

This is where a structured foreign-law expert report can be decisive.

14. Security for Costs (HMK) and Foreign Creditors: A Manageable but Real Consideration

Foreign plaintiffs in Turkey may face security for costs mechanisms under Turkish procedural rules in certain circumstances. This does not block enforcement, but it can:

affect cashflow planning,
influence the choice between arbitration vs. court litigation,
and shape how quickly interim remedies can be pursued.

Practice point: Address potential security issues early rather than reacting after the court orders it.

15. Service of Process Abroad: Time, Treaties, and Tactical Planning

If you must sue a foreign defendant or serve documents abroad, Turkey’s service mechanics can involve:

Hague Service Convention channels (where applicable),
bilateral treaties,
and formal translation requirements.

Tactical reality: Service abroad can become the longest pole in the tent. If assets are in Turkey, creditors should prioritize:

interim attachment (where possible) and
asset-directed measures that do not depend on slow overseas service timelines.

16. Step-by-Step Playbook: How to Collect a Foreign-Law Contract Receivable in Turkey

Step 1 — Contract Diagnostics (One-Page “Clause Map”)

Extract and summarize:

governing law,
jurisdiction clause,
arbitration clause (seat, rules, institution),
notice provisions,
payment terms and currency,
interest/penalty clauses,
set-off restrictions,
acceptance and delivery mechanics.

Step 2 — Asset Mapping in Turkey

Identify:

banks and possible accounts,
key customers (accounts receivable targets),
real estate,
vehicles and machinery,
inventory,
shares, trademarks, domain names,
ongoing projects and payment streams.

Step 3 — Choose the Route (A/B/C)

Route A (ilamsız icra) if speed + pressure is needed and you can handle objection.
Route B (tenfiz) if you have or must obtain a foreign judgment.
Route C (award enforcement) if arbitration governs.

Step 4 — Build the “Turkey-Ready Evidence Package”

certified translations,
apostilles/legalizations,
authority docs,
a clean calculation table,
notice proof.

Step 5 — Consider Interim Attachment Before Anything Else

If asset flight risk is present, prioritize interim attachment with a strong evidentiary narrative.

Step 6 — Execute Fast, Then Litigate to Finalize

Once interim attachment is in place, the leverage shifts. Continue with:

the main merits case/arbitration,
or tenfiz,
while maintaining enforcement pressure.

Step 7 — Settlement Engineering

Many cross-border cases settle once Turkish assets are effectively frozen. Settlement should address:

release mechanics,
payment schedule,
default triggers,
jurisdiction/arbitration for settlement disputes,
and collateral if possible.

17. Common Pitfalls That Cost Creditors Months

Ignoring arbitration clauses and filing merits litigation in Turkey (leading to jurisdictional dismissal).
Starting execution without a plan for the debtor’s objection.
Weak evidence of delivery/acceptance (especially in services/software/EPC scopes).
Missing apostille / improper translation—tenfiz and award enforcement are unforgiving here.
Wrong debtor identity (trade name changes, group companies, branch vs HQ).
Overstated interest/penalties without alternative pleading.
Late interim attachment after assets have already moved.
Failure to prove foreign law when it materially changes outcome (limitation, notice, damages).

18. Conclusion: Winning the Legal Argument Is Not Enough—Win the Collection Strategy

Collecting receivables in Turkey arising from foreign-law governed contracts is less about abstract conflict-of-laws theory and more about strategic sequencing:

Diagnose governing law + forum/arbitration early,
choose the correct enforcement route (execution / tenfiz / award),
build a Turkey-ready evidence file with perfect formalities,
move fast on interim attachment where appropriate,
and prepare for the debtor’s predictable defenses (objection, jurisdiction, foreign law ambiguity, limitation).

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